Fresh Del Monte Produce, Inc. · NYSE:FDP
Fresh Del Monte Produce — FY2020 Earnings Presentation
46 slides from Fresh Del Monte Produce's earnings presentation, Feb 24, 2021
Slide 1: Providing Healthy Choices
Providing Healthy Choices Investor Relations Fresh Del Monte Produce Inc. February 24, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements regarding the intent, beliefs or current expectations of the Company or its officers with respect to the Company’s plans and future performance. These forward-looking statements are based on information currentl
Slide 3: Key Differentiators
FRESH DEL MONTE PRODUCE Key Differentiators Demand for value-added produce is growing Positioned like no one else – vertically integrated & innovative Global player 5-Year strategic transformation capitalizes on our strengths 3
Slide 4: Decades of Growth
FRESH DEL MONTE PRODUCE AT A GLANCE Decades of Growth 1800’s 1900’s 2000’s 2010’ / 2020’s 1892 1989 2004 2013 2017 Acquired Acquired additional Announced new joint Del Monte® brand Fresh business separated Del Monte Foods production land in ventures with Del established from canned Europe’s full pro
Slide 5: Worldwide Business – Unmatched Global Network
Worldwide Business – Unmatched Global Network FRESH DEL MONTE PRODUCE AT A GLANCE We are one of the world’s leading 35,000 37,600 EMPLOYEES GLOBALLY vertically-integrated producers, 90+ Fresh distributors and marketers of fresh and & Value-Added COUNTRIES PRODUCTS fresh-cut fruit and vegetables as w
Slide 6: Worldwide Business – Unmatched Global Network
Worldwide Business – Unmatched Global Network FRESH DEL MONTE PRODUCE AT A GLANCE 45% OF OUR FRESH PRODUCE WAS GROWN ON COMPANY-CONTROLLED FARMS 103k ACRES UNDER PRODUCTION 61k ACRES OWNED 42k ACRES LEASED 26% OF OWNED ACRES SET ASIDE TO PRESERVE BIODIVERSITY AND PROTECT WILDLIFE 6
Slide 7: Worldwide Business - Quality and Safety
FRESH DEL MONTE PRODUCE AT A GLANCE Worldwide Business - Quality and Safety To demonstrate compliance with international regulations and standards on environmental protection, food safety and social accountability, our farms and our facilities are certified by one or more of the following standards:
Slide 8: Broad Portfolio of Products
Worldwide Business – Broad Portfolio of Products FRESH DEL MONTE PRODUCE AT A GLANCE EUROPE CENTRAL AMERICA ASIA AFRICA Sales & Sourcing Sourcing Sales Sales ▪ Fresh & Fresh-cut fruit ▪ Bananas ▪ Fresh & fresh-cut ▪ Fresh fruit U.S. & CANADA and vegetables ▪ Pineapples fruit and ▪ Prepared food Sale
Slide 9: Broad Portfolio of Products - Leading Market Positions
Broad Portfolio of Products - Leading FRESH DEL MONTE PRODUCE AT A GLANCE Market Positions Leading marketer of fresh A leading marketer of fresh-cut fruit Third largest marketer of bananas in pineapples in the U.S., and a in the U.S, Canada, Japan, South the U.S., and a leading marketer of leading m
Slide 10: One of the Most Widely Recognized Food Brands Worldwide
One of the Most Widely Recognized FRESH DEL MONTE PRODUCE AT A GLANCE Food Brands Worldwide Symbol of quality and freshness Broad appeal ▪ Global opportunity to expand to new products and markets Health Wellness ▪ Better-for-you attributes 10
Slide 11: Market Leader & Pioneer in the Fresh Produce Industry
Market Leader & Pioneer in the Fresh FRESH DEL MONTE PRODUCE AT A GLANCE Produce Industry We were the… ✓ FIRST to complete a national U.S. distribution network ✓ FIRST to launch a national fresh-cut fruit network ✓ FIRST to introduce premium gold pineapple ✓ FIRST to achieve Global G.A.P. ✓ FIRST to
Slide 12: Sales & Product Platform
Sales & Product Platform FRESH DEL MONTE PRODUCE AT A GLANCE 2020 NET SALES: $4.2 BILLION Other Products & Services 3% Middle Tomatoes 1% Vegetables 4% Prepared East, 10% Food, 6% Melons, 2% Avocados, Other Fruit & Europe, 8% Vegetables, 16% 2% Non-Tropical Fruit, 5% BY BY Other, 1% REGION Fresh-Cut
Slide 13: Experienced and Results Oriented Management
Experienced and Results Oriented FRESH DEL MONTE PRODUCE AT A GLANCE Management Years at Name Title FDP Mohammad Abu-Ghazaleh Chairman and CEO 25 Youssef Zakharia President and COO 20 Eduardo Bezerra Senior Vice President and CFO 1 Marlene Gordon Senior Vice President – General Counsel, Chief Admini
Slide 14: A Diversified Company Positioned for Long-Term Growth
A Diversified Company Positioned for Long-Term Growth…
Slide 15: Capitalizing on Industry Dynamics
LOOKING INTO THE FUTURE Capitalizing on Industry Dynamics GLOBAL POPULATION 9,500 9,000 8,500 8,000 Millions 7,500 7,000 6,500 6,000 2013 2023 2033 2043 Source: The United Nations (2010) 15
Slide 16: Capitalizing on Industry Dynamics
LOOKING INTO THE FUTURE Capitalizing on Industry Dynamics FARM ACREAGE PER CAPITA 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 1900 1994 2050 Source: Food, Land, Population, and the US Economy – Cornell University / Instituto of Nazionale della Nutrizione (1994) 16
Slide 17: Capitalizing on Industry Dynamics
LOOKING INTO THE FUTURE Capitalizing on Industry Dynamics "Fruits and vegetables are expected to continue experiencing growth in niche areas as consumers persist in seeking out novel flavors from around the world. Increases in disposable personal income will support purchases of premium fruits and v
Slide 18: Capitalizing on Industry Dynamics
LOOKING INTO THE FUTURE Capitalizing on Industry Dynamics Value-Added Produce Booms in Popularity ”Consumers’ positive attitude towards health and wellness is translating into higher spends in value-added fruits and vegetables. Value-added category is exciting because it gives traditional commoditie
Slide 19: Strategy
Strategy
Slide 20: Our Vision
Our Vision Inspiring healthy lifestyles through wholesome and convenient products 20
Slide 21: Our Values
Our Values ▪ EXCELLENCE: We provide high quality level in all our products and services to fully achieve business results. ▪ PASSION: We have a passion to consistently deliver the best quality, fresh, fresh-cut fruit and vegetables and prepared produce in the industry. ▪ CREATIVITY: We foster innova
Slide 22: Strategic Imperatives
Unlocking the Value STRATEGIC IMPERATIVES We have embarked on a 5-year plan to transform Fresh Del Monte Produce The key elements of our transformation involve: Protect and grow the core Drive innovation and expansion growth on value-added categories Become a technology driven company Become a consu
Slide 23: Focus on Strong - Execution, Fundamentals and Returns
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns Protect and grow the core Drive innovation and expansion growth on value-added categories 23
Slide 24: The Del Monte Brand
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns The Del Monte® Brand Food and Beverage Stores 24
Slide 25: The Del Monte Brand
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns The Del Monte® Brand e-Commerce 25
Slide 26: Focus on Strong - Execution, Fundamentals and Returns
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns Become a technology driven company Become a consumer driven company 26
Slide 27: Focus on Strong - Execution, Fundamentals and Returns
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns Evolve our culture to increase employee engagement and productivity 27
Slide 28: Sustainability: Waste Less for a Better World Tomorrow
Sustainability: Waste Less for a Better UNLOCKING THE VALUE World Tomorrow 28
Slide 29: Sustainability: Waste Less for a Better World Tomorrow
Sustainability: Waste Less for a Better UNLOCKING THE VALUE World Tomorrow 29
Slide 30: Sustainability: Waste Less for a Better World Tomorrow
Sustainability: Waste Less for a Better UNLOCKING THE VALUE World Tomorrow FOLLOW OUR JOURNEY TOWARDS A BETTER WORLD TOMORROW To view our 2020 update on our progress, please visit our CSR website freshdemontecsr.com 30
Slide 31: Financial Review
Financial Review
Slide 32: Summary Data
Summary Data FINANCIAL PERFORMANCE Full Year 2016 2017 2018 2019 2020 Net Sales $ 4,011 $ 4,086 $ 4,494 $ 4,489 $ 4,202 Gross Profit $ 461 $ 332 $ 286 $ 306 $ 251 % Margin 12% 8% 6% 7% 6% Operating Income $ 244 $ 153 $ 39 $ 114 $ 77 Net Income $ 225 $ 121 $ (22) $ 67 $ 49 EPS - GAAP $ 4.33 $ 2.39 $
Slide 33: Fresh and Value-Added Products
Fresh and Value-Added Products FINANCIAL PERFORMANCE Full Year 2016 2017 2018 2019 2020 Net Sales* $ 2,074 $ 2,184 $ 2,655 $ 2,710 $ 2,484 Pineapples $ 495 $ 493 $ 488 $ 455 $ 459 Fresh-Cut Fruit $ 418 $ 497 $ 507 $ 524 $ 469 Fresh-Cut Vegetables $ 90 $ 94 $ 420 $ 462 $ 384 Non-Tropical $ 260 $ 236
Slide 34: Bananas
Bananas FINANCIAL PERFORMANCE Full Year 2016 2017 2018 2019 2020 Net Sales $ 1,812 $ 1,775 $ 1,703 $ 1,656 $ 1,603 Gross Profit* $ 159 $ 113 $ 93 $ 105 $ 92 Gross Profit Margin 9% 6% 5% 6% 6% Figure in USD (millions) * Excludes asset impairment, restructuring charges & gain/(loss) on the sale of ass
Slide 35: Earnings Per Diluted Share
Earnings Per Diluted Share FINANCIAL PERFORMANCE $4.74 $2.43 $1.12 $1.15 $0.40 $(0.08) $(0.45) 2016 2017 2018 2019 2020 Q4 2019 Q4 2020 * Excludes asset impairment, restructuring charges & gain/(loss) on the sale of assets. 35
Slide 36: Adjusted EBITDA
Adjusted EBITDA FINANCIAL PERFORMANCE $340 $233 $209 $182 $161 2016 2017 2018 2019 2020 Figure in USD (millions) * Excludes asset impairment, restructuring charges & gain/(loss) on the sale of assets. 36
Slide 37: Operating Cash Flow
Operating Cash Flow FINANCIAL PERFORMANCE $332 $247 $194 $181 $169 2016 2017 2018 2019 2020 Figure in USD (millions) 37
Slide 38: Debt & Capital Expenditures
Debt & Capital Expenditures / Investing FINANCIAL PERFORMANCE in Diversification & Expansion Capital Expenditures $151 $150 Debt $662 $147 $139 $587 $122 $542 $358 $232 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Total Debt Repurchase Program Dividend Policy ▪End of 2020 $542 million ▪$845 mil
Slide 39: Fresh Del Monte Produce Investment Highlights
Fresh Del Monte Produce Investment Highlights $100 million Asset Sale Optimization Program Clear Growth DEL MONTE Strategy Brand Vertically- Integrated Market Leader and Global in Diverse Operations Produce Categories Distribution and Fresh-Cut Centers (Value-Added Focus) 39
Slide 40: Appendix
Appendix
Slide 41: Income Statement
Income Statement APPENDIX Full Year 2016 2017 2018 2019 2020 Net Sales $ 4,011 $ 4,086 $ 4,494 $ 4,489 $ 4,202 Cost of Sales 3,550 3,754 4,208 4,177 3,918 Other producet-related charges - 1 - 5 34 Gross Profit 461 332 286 306 251 % Margin 12% 8% 6% 7% 6% SG & A 187 173 201 201 196 Gain/(Loss) on sal
Slide 42: Non-GAAP Measures
Non-GAAP Measures APPENDIX The Company's results are determined in accordance with U.S. generally accepted accounting principles (GAAP). Some of the information presented in this press release reflects adjustments to GAAP measures such as amounts related to restructuring, asset impairment and other
Slide 43: Income Statement
Income Statement APPENDIX Quarter ended January 1 December 27, 2021 2019 Net income Net income Net income (loss) Net income (loss) (loss) attributable (loss) attributable attributable to Fresh attributable to Fresh to Fresh Del Monte to Fresh Del Monte Operating Del Monte Produce Operating Del Monte
Slide 44: Income Statement
Income Statement APPENDIX (1) During the fourth quarter and year ended December 27, 2019, the Company incurred a loss of $10.9 million related to a voluntary recall of vegetable products in North America. The recall charges included $6.0 million in sales claims, a component of net sales, related to
Slide 45: Balance Sheet
Balance Sheet APPENDIX Full Year 2016 2017 2018 2019 2020 ASSETS Cash & Short Term Investments $ 20 $ 25 $ 21 $ 33 $ 17 Accounts Receivable 412 432 $ 474 $ 439 435 Inventory & Other 529 562 644 579 561 CURRENT ASSETS 961 1,020 1,139 1,051 1,012 Property, Plant & Equipment 1,272 1,328 1,392 1,403 1,4
Slide 46: Cash Flow
Cash Flow APPENDIX Full Year 2016 2017 2018 2019 2020 Net Income* $ 226 $ 119 $ (16) $ 69 $ 46 Non-Cash Charges 93 104 $ 150 $ 110 $ 98 Working Capital 13 (29) 113 (10) 37 Operating Cash Flow 332 194 247 169 181 Capital Expenditures (147) (139) (151) (122) (150) Acquisitions/Disposals (42) 5 (340) 6
Fresh Del Monte Produce — FY2020 Earnings Presentation on 6ix